MS SB2537

Establishes a "no pay, no play" rule denying recovery for the first $10,000 in bodily injury damages and first $10,000 in property damage for uninsured or unfinancially responsible motorists involved in accidents.

Exempts the damage cap if the uninsured driver was convicted of implied consent violation, intentionally caused the accident, fled the scene, or was committing a felony at time of accident.

Allows uninsured motorists to assert the damage limitation as an affirmative defense and requires uninsured drivers who file suit to pay all court costs if awarded damages equal to or less than minimum liability limits.

Permits passengers in uninsured vehicles to recover full damages unless they are also the vehicle owner, and preserves insurers' subrogation rights for amounts exceeding $10,000.

Requires auto insurers to reduce uninsured/underinsured motorist coverage rates by minimum 20% for policyholders selecting economic-only coverage by January 1, 2012, effective July 1, 2011.